New Owner Coming for Leland Point Complex; District Attorney Moving Out of the Picture

Allegheny County District Attorney Stephen A. Zappala Jr. held a news conference at the  on Wednesday afternoon to announce that the district attorney’s office is ending its involvement in the rehabilitation of the  complex.

Zappala said that Leland Point Holdings, LLC, will soon no longer be the owner of the complex and that a new ownership group—Apollo Property Management, LLC—will take over, possibly by Monday.

A timeline provided by the district attorney’s office shows that the office’s overseeing of the apartments complex is officially expected to end on Thursday, June 2, after a meeting with Allegheny County Common Pleas Judge David R. Cashman “because all nuisances have been remedied and there is a new buyer for the property.”

In the meeting/conference with the Baldwin Borough Council and media members on Wednesday, Zappala said that efforts taken by Baldwin, such as instituting one-way streets that allow cameras to videotape each vehicle that enters the complex, strict parking regulations and increased lighting, have alleviated some of the crime that previously plagued Leland Point.

Zappala also said that Apollo Property Management has promised to invest $3 million in the complex to further improve safety, to repair uninhabitable buildings and to comply with health codes.

Zappala said that Apollo will seek a “different kind of tenant” than those that Leland Point currently leases to, such as tenants that can afford a higher rent. The revenue obtained through higher rent should allow Apollo to increase security and safety measures, as well as to improve living conditions.

“I think it’s good news,”  Chief Michael Scott said, “that we finally have a buyer that, apparently, is willing to put some money into the property to allow it to make things better up there, or continue on the same path of making things better than what they were.

“We’ve had a concentrated effort there (at Leland Point) since before I even got here (to the Baldwin police department in 2009) with our sub-station up there and with the district attorney’s help with being able to get the extra money to have ’round-the-clock (patrol) in addition to the regular patrols we have up there … It’s really helped with the crime problem up there.”

Baldwin Council President Michael Stelmasczyk agreed with the news being a positive for the borough.

“I think it’s great news,” Stelmasczyk said. “Not only is it (the complex) being sold to a more reputable firm it sounds like, (but also,) anybody that’s willing to put $3 million in an escrow account to fix up the buildings is good news to me.

“The other thing is we’ve filed liens for our delinquent sewage (fees), our delinquent alarm fees; we’ll get that money back.”

Borough Manager John M. Barrett spoke more about the money owed to Baldwin by the property that it now expects to receive.

“Anytime you have a transfer of ownership, there’s some sense of optimism,” Barrett said. “We need to make sure that we don’t lose our guard here. We have to get communication from the new owners and lay out our expectations early and work with them and keep the momentum going from the district attorney’s office.

“Obviously, there’s things like the liens being satisfied that are a big relief. The reality is the sewer fund has been without those moneys for some time. We’ve had lots of talks about the level of capital repairs needed in Baldwin sewers. In other words, this is not money in our pockets; this is just less money we’ll have to borrow to fix our sewers. That’s the way I look at it … 

“I think it’s good news if they (Apollo) do the things they say: put money into the property, try to increase some rents to get a different clientele in there.”

The district attorney’s office started to oversee the Leland Point complex in late May 2010 and officially charged its owner exactly one year ago—June 1, 2010—for one count of public nuisance.

Leland Point is a 1,076-unit complex.  that approximately 10 percent of Baldwin Borough’s population resides at Leland Point but that approximately 65 percent of the borough’s police calls come from there.

Zappala said that unbalanced attention on Leland Point harms the borough’s other residents. He also added, “The people that were living there (at Leland Point) were treated very badly, and you are entitled, as a matter of law, to certain promises when you have a lease arrangement with a landlord: They’re called warranties of habitability. The short version (of that) is safe and decent housing, and they received neither … 

“I understand that the new group (Apollo), through their attorneys, have consistently—at least in their discussions with my attorneys and my inspector—acted in good faith, and I’m optimistic that they understand the rules, they understand the ramifications of creating a situation like Leland Point, LLC, created.

“So I’m inclined, unless (the Baldwin Council) has some concerns, to wind down our involvement in this matter.”

The Baldwin council members had no objections.

Zappala closed the news conference by telling the council that he was pleased with his office’s partnership with the borough in working through issues with Leland Point’s soon-to-be-former owner.

“We did pretty good,” he said. “We did something nobody else in Pennsylvania’s ever done: working together like this. And we did the right thing for the people that you guys (the council) represent. And I appreciate working with you.”